Agricultural Revitalization: Private Sector to Fund 100,000 Hectares of Food Crops

By Cimba Shepherd Nhamo

In a groundbreaking move to revitalize Zimbabwe’s agricultural sector, the private sector has committed to funding the production of selected food crops on nearly 100,000 hectares of land, with an estimated investment of $175 million. This bold initiative aligns with the Government’s policy of encouraging private companies to finance the production of raw materials for their processes, thereby reducing reliance on imports and boosting domestic production.

The Government’s innovative policy mandates that private companies ensure at least 40% of their annual raw material requirements are met through value chain financing of production by farmers. This strategic shift aims to increase domestic production, reduce dependence on imports, and support the growth of local industries.

Key private sector contractors, including Staywell, PHI, Delta, and Northern Farming, under the umbrella of the Food Crop Contractors Association (FCCA), plan to contract a total of 97,000 hectares of land for various crops, according to the Government’s 2024/25 Summer Plan. The breakdown of the private sector funding is as follows:

– Maize production: 45,000 hectares, targeting 270,000 tonnes at a cost of $74 million
– Soybeans: 40,000 hectares, projected to yield 100,000 tonnes at a cost of $52.8 million
– Sorghum: 12,000 hectares, with an estimated output of 24,000 tonnes at a cost of $18.4 million

Total investment: $145.3 million

The private sector program will complement the National Enhanced Agriculture Productivity Scheme (NEAPS), which was introduced in 2020 as a special program for import substitution. The 2024/25 NEAPS will be funded by AFC Holdings, NMB, and CBZ, with Government performance guarantees.

In addition to food crops, the private sector also participates in funding other key crops, such as tobacco and cotton. The total estimated cost of cotton production is $248.1 million, with the private sector financing 33% of this cost. The private sector is expected to contract 90,000 hectares of cotton under the Pfumvudza/Intwasa cotton program.

Benefits of the Private Sector Funding:

1. Increased domestic production of food crops, reducing reliance on imports.
2. Boost to local industries, supporting economic growth and development.
3. Enhanced food security for Zimbabweans.
4. Increased employment opportunities in the agricultural sector.
5. Improved livelihoods for farmers and rural communities.

The private sector funding of 100,000 hectares of food crops marks a significant milestone in Zimbabwe’s agricultural revitalization efforts. This collaboration between the Government and private sector is expected to have a positive impact on the country’s food security, economic growth, and development.